Govt. looking to slash prices of 36 Rafale aircrafts: Sources

New Delhi, Jan. 25 (ANI): The Indian government is looking to bring down the prices of 36 Rafale fighter jets and that is why it is negotiating with France in that matter, sources state.

According to sources, the MoU between India and France has been signed for the inter-governmental agreement. The price of the Rafale is near Euros 9 Billion and the government is negotiating to bring the price down to under USD 8 Billion.

Sources add that the negotiations on Rafale jet deal will take two-four weeks and the terms of advance payment for jets will be decided by Union Cabinet and not by the Ministry of Defence.

India wants 80 percent of service ability of aircrafts and frame works of the agreement for the deal has already been completed.

Earlier, Prime Minister Narendra Modi had said the inter-government agreement on purchase of 36 Rafale aircrafts has been signed, adding that the financial aspects would be resolved soon.

“France is a country with which we have had a strategic partnership. And it was 18 years ago that we signed the partnership with France. France is one of those few countries with which India has also an agreement in the area of civil nuclear cooperation. Whether it is the sector of defence, space or other strategic areas, our cooperation is strong, old and trustworthy. If we were to speak of the sector of defence, we are very pleased that in the purchase of 36 Rafale aircrafts apart from some financial issues, there has been an inter-governmental agreement on other issues. We have decided to resolve the financial aspects as fast as possible as well,” he said after holding talks with French President Francois Hollande at the Hyderabad House here.

India and France on Monday exchanged 14 agreements, cutting across a wide variety of sectors.

One of the most sought Memorandum of Understanding was signed between India and France on purchase of 36 Rafale aircrafts. (ANI)